Becoming a Doge miner does not have to be that complicated. Doge coin, compared to the likes of Bitcoin and Ethereum, does not consume a lot of electrical or computer processing power. The Dogecoin platform also uses a different hash algorithm compared to Bitcoin.
From the outside, the work of a Doge miner is pretty simple since it only needs a Doge miner to confirm transactions on the Doge blockchain. But getting into the details of the actual work, it is not as simple as it seems. Especially for an entry level Doge miner.
We shall discuss the basics of becoming a Doge miner. Here, we shall look at the hardware needed, the type of hash algorithm used on the platform, and where to store the newly minted coins. Additionally, we shall briefly discuss which is more profitable between being an individual Doge miner or joining a pool of Doge miners.
Doge miner: Basics of the Scrypt hash function
The Scrypt hash was first used on the Litecoin blockchain as an alternative to Bitcoin’s SHA-256. However, both functions are used in a Proof of Work consensus environment.
For a Doge miner to be rewarded, they must correctly get the answer of the Scrypt hash function on the Dogecoin blockchain right. This will also mean that the miner will be confirming a transaction onthe platform hence adding a new block on the Dogecoin blockchain.
The Scrypt hash function makes great usage of the Random Access Memory of the processor.The block confirmation time on the Dogecoin blockchain is roughly 2.5 minutes.
Initially,the Scrypt algorithm was ASIC resistant but that has changed. The difference between ASICs, GPUs, and CPUs in relation to crypto mining can be found here.
Doge miner: Hardware requirements
Although Dogecoin uses the same consensus algorithm as Bitcoin, i.e Proof of Work, when mining, it consumes less computing power and electrical energy than Bitcoin.
This makes it possible for a Doge miner to use their computer’s processor to mine Dogecoins. However, this options may not bring many returns and can cause the computer to overheat hence damaging it.
Instead of using a computer’s CPU, a Doge miner can choose to use a GPU to mint some coins off the Dogecoin blockchain. Popular options include the Nvidia GeForce GTX and the ASUS RX Vega which have a price range of between 430 and 600 U.S dollars.
For a more serious Doge miner, investing in an ASIC miner that supports the Scrypt hash function is recommended. Note that an ASIC produces a lot of noise, consumes a large amount of electrical power,and is substantially expensive. A Scrypt ASIC miner’s price ranges between 700 and 8,000 U.S dollars.
Apart from having the necessary hardware, a Doge miner needs to accompany it with compatible software. Each hardware choice will have one or two software programs that will work without giving the Doge miner a hard time.
For example,when using Nvidia GPUs, the CudaMiner software will work best while the MultiMiner software will work best for a Scrypt-compatible ASIC.
Doge miner: Compatible wallet
All mined Dogecoins need to be stored. A Dogecoin-compatible wallet is needed for this purpose. More than just storing your coins, a wallet allows you to send coins when doing purchases or when gifting a friend with free Dogecoins. A Doge miner needs the Dogecoin Core full wallet.
Doge miner: Individual or a pool?
A Doge miner may choose to dive in solo or to join a pool of other Dogecoin miners. Asa beginner, joining a pool can help you learn the ropes fast.
Note that in a pool, the reward on every block is shared among those who contributed the computing power to mine that block. But as a solo miner, the reward is all yours.
Another way to mine Dogecoin is through the cloud. Here, a miner does not have to invest in heavy mining gear, instead, the miner rents computer power from a data center then he pays on a monthly basis or as agreed.
Beware of cloud mining since you have to pay the set amount even when the price of Dogecoin is not capable of footing the cost.
As a beginner, a mining pool can be your best bet if you are not capable of investing in costly ASIC miners. Another relatively good idea is to cloud mine Dogecoin although this alienates you from the real action.
A Doge miner, like any other crypto miner, needs to do a profit and loss analysis before heading to the mines.